New Real Estate Laws
1. New Law for Flipping Houses
AB 968 requires flippers of residential properties up to four units to disclose all recent repairs and renovations in addition to all other existing disclosures. The Bill applies to properties resold within 18 months of initial closing.
2. Homestead Exemptions Have Been Increased
California homestead exemptions make it extremely difficult to reach equity of judgment debtor’s home if you are a judgment creditor.
Exemptions by County for 2025 are as follows:
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LA – $722,151
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OC – $722,151
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Riverside – $645,000
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San Diego – $722,151
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San Bernardino – $505,000
3. Proposed New Federal Law to Strip Coastal Commission of Control Over California Coastline
A proposed new federal law would strip the Coastal Commission over the California coastline. Representative, Kevin Kiley, has introduced the “Coastal Commission Accountability Act.” The purpose is to stop much of the control restrictions on development along the coastline. If passed, the Bill would require all decisions of the Coastal Commission align with federal guidelines and statutes. This would strip the Commission of independent power of the California 1,100 miles of coastline.
Comment: Obviously the environmentalists are not happy about this law and are fighting it tooth and nail.
4. Arbitration Laws are Changing in California
Starting January 1 of this year, arbitration laws have changed to allow for more discovery, increased costs and less swift hearings.
SB 940 now provides for a party depositions and allows for subpoenas for third party depositions regardless of whether discovery was permissible in the arbitration agreement signed by the parties. Ultimate scope of discovery in any case is left to the arbitrator.
Comment: This expanded discovery in arbitration is great for lawyers and arbitration companies. It used to be that the purpose of arbitration was to avoid high costs of discovery and to provide for a swift resolution. Now the choice of the arbitrator, if you go that route, becomes critical. He/She is the gatekeeper determining amount and ultimate scope of discovery. However, the arbitrator cannot prevent the taking of costly party depositions and the idea of having a fast resolution to your case is slipping away.
5. LA City Council Proposes a One-Year Moratorium on Evictions and Freeze Upon Rent Increases
It did not take these liberal lawmakers long after the fires to try to impose more restrictions on property owners from evicting tenants and also receiving a fair rent for their property. This matter is still not resolved with the City Council, but should be voted on in the very near future.
Comment: What about the property owners/landlords? There is no freeze on their obligations to pay mortgages, taxes, maintenance, and insurance. If you cannot evict for one year and cannot raise the rent at all, why own property? Better to be a renter and have all the laws in your favor.
6. Safeco Joins State Farm and Allstate in No Longer Offering Insurance in California on Certain Products
Safeco claims that they are losing money in California with restrictive regulations, pricing allowed by the Insurance Commissioner, and natural disasters. This is projected to affect 88,000 Californians.
About the Author
Disclaimer:
Scott Souders is a real estate attorney who has practiced real estate law in excess of 45 years in Southern California. The Real Estate Law Update cites cases or statutes which are summarized and should not be relied upon without fully reading the cases or statute in the advance sheets and shepardizing the same and consulting with your own attorney.
About the Author
Disclaimer:
Scott Souders is a real estate attorney who has practiced real estate law in excess of 45 years in Southern California. The Real Estate Law Update cites cases or statutes which are summarized and should not be relied upon without fully reading the cases or statute in the advance sheets and shepardizing the same and consulting with your own attorney.
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